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An organization wants to avoid upfront costs and prefers to pay for cloud services based on resource consumption as it occurs. Which cloud pricing model best suits their needs?
Spot pricing model
Pay-as-you-go pricing model
Enterprise Agreement
Reserved Instances pricing model
The pay-as-you-go pricing model charges customers based on actual resource usage without requiring upfront payments or long-term commitments. This model provides flexibility and is ideal for organizations that want to avoid initial expenditures and pay only for what they use. Reserved Instances require a commitment over a period, typically offering discounts in exchange for upfront payment, which doesn't meet the organization's need to avoid upfront costs and commitments. Spot pricing offers discounted rates for unused capacity but comes with the risk of service interruption, which may not be suitable for all workloads. Enterprise Agreements involve contractual commitments and often upfront negotiations, which contrasts with the organization's desire for flexibility and no upfront costs.
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